Phil Hogan
Question:216 Mr. Hogan asked the Minister for Finance when a tax refund will be awarded to a person (details supplied); and if he will make a statement on the matter. [41117/06]
View answerTuesday, 5 December 2006
Questions (199, 200)
Written answers
I am informed by the Revenue Commissioners that, according to their records, this taxpayer is currently in employment and a certificate of tax credits and standard rate cut off point issued on 1 November 2006 in respect of this employment. Any refund due to the taxpayer because of unused credits on his behalf will be made by the employer. If the taxpayer is no longer in employment he should submit a claim for repayment by completing a form P50 and submitting this, together with his P45 issued by his last employer, to the Kilkenny Revenue District.
John McGuinness
Question:217 Mr. McGuinness asked the Minister for Finance his views on not taxing the State pension in cases where a person who is over 66 years continues to work and has no other employment related pension; if it is possible to quantify the number of people in this category and the loss of revenue to the State arising from such a decision; and if he will make a statement on the matter. [41128/06]
View answerIt is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. This includes the contributory and non-contributory pensions paid by the Department of Social and Family Affairs and there are no plans to change this position.
However, in the case of social welfare pension income, the extent to which taxation actually arises in a given case depends, of course, on the amount of other income that the social welfare recipient, or the recipient's spouse, has in the particular tax year. If there is no other income in addition to the social welfare payment, the existing exemption limits or tax credits can be expected to ensure that there is no tax to be paid on the social welfare income itself.
I am advised by the Revenue Commissioners that their income tax statistics do not generally distinguish between the amounts of tax that arise from pensions and from other sources. However, it is estimated that for 2003 — the latest year for which the necessary detailed information is available — the total tax liability on the combined social welfare pension and other income of some 41,200 income earners aged 65 years or over was of the order of €253 million.